APROJECT REPORT

ON

“PREFRENCE LEVEL OF CONSUMERS TOWARDS THE BRAND”

Submitted in partial fulfillment of MASTERS OF BUSINESS ADMINISTRATION

ACADEMIC SESSION: 2009-11

Under the Guidance of

External Supervisor

Senior Sales Executive

Mr. Ankur Jain

Submitted To: Submitted By:

ABES Institute Business Management Mansi Jain

MBA

0961070026

ABES Institute of Business Management

NH-24, Vijay Nagar,

Ghaizabad1

TABLE OF CONTENTS

1. Acknowledgement

2. Preface

3. Executive Summary

4. Introduction

- Inception of Bisleri

- Product Profile

- Mineral Water Industry – Current Market Scenario

- Manufacturing

5. Objective of the study

6. Research Methodology

- Sample Size

- Data Collection

7. Advertising Campaign of Bisleri

8. Marketing Mix

9. Competition in the market

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10. SWOT Analysis

11. Findings

12. Conclusion

13. Limitations

14. Recommendations

15. Annexure

16. Bibliography

3

CERTIFICATE

This is to certify that Ms. Mansi Jain, is a student of ABES Institute of Business

Management and has done her Training Project on the topic “PREFRENCE LEVEL

OF CONSUMERS TOWARDS THE BRAND” in the specialization area

MARKETING.

The work embodied in this report is original and is of the standard expected of an

MBA student and has not been submitted in part or full to this or any other University

for the award of any Degree or Diploma. she has completed all requirements of

guidelines for Training Project Report and the work is fit for evaluation.

Signature of Head of Institution

Name :

Designation :

Institution :

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ACKNOWLEDGEMENT

I am honored to be attached with organization. I extend my sincere gratitude to

the management of “BISLERI International Pvt. Ltd., Ghaziabad” especially to

Mr. Deepak Changa(Assistant General Manager), for availing me and giving me

an opportunity to do my training in his organization.

I am deeply thankful to Mr. Ankur Jain (senior sales executive) whose

valuable guidance and co-operation helped me in the accomplishment of this project

report.

I am also thankful to the entire team of marketing of the company who

helped me a lot whenever I faced difficulty in my project.

MANSI JAIN

5

PREFACE

Modern organizations are highly complex and dynamic systems. They operate under

very turbulent social economic and political environment. They are required to

reconcile several incompatible goals. Conflicting roles and divergent interests. They

are also fraught with use risk and uncertainties hence tactful management of such

organization to plan execute, guide, coordinate and control the performance people to

achieve predetermine goal. Management has to keep the organization vibrant moving

and in equilibrium it has to achieve goals which themselves are changing. It is

therefore the problems is highly complex and ticklish. To tackle these problems,

information plays an important role. Marketing Research is the appropriate tool to get

most useful information about the market. This information will asset to marketing

manager in making effective decision. The research are used to acquire and analysis

information and to make suggestions to management as to how marketing problems

should be solved.

The marketing research is a process which links to manufacturers, dealers and

individuals through information an important part of curriculum of MBA

programme, the project taken by student in any business organization. After

completion of I year of the programme . The objective of this project is to enable the

student to understand the application of academies in real life business. I am fully

confident that this project will be extremely useful for the management .

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EXECUTIVE SUMMARY

The project is an extensive report on how the Bisleri company markets its strategy

and how the company has been able in tackling the present tough competition and

how it is cooping up by the allegations of the quality of its products. The report

begins with the history of the product and the introduction of the Bisleri company.

This report also contains the basic marketing strategies that are used by the Bisleri

company of manufacturing process, Water Technology (Ultra Heat Treatment),

production policy, advertising, export scenario, future prospect, and government

policies. The report includes some of the key salient features of market trend issues.

In today’s world of cutthroat fierce competition, it is very essential to not only exist

but also to excel in the market. Today’s market is enormously

more complex. Hence forth, to survive in the market, the company not

only needs to maximize its profit but also needs to satisfy its customers and should

try to build upon from there.

7

8

Introduction to the Mineral Water Industry

Water is the most important liquid in the world. Without water, there would be no

life, at least not the way we know it. Our bodies are estimated to be about 60 to 70%

water. Blood is mostly water, and our muscles, lungs, and brain all contain a lot of

water. We need to drink water because water is needed to regulate body temperature

and to provide the means for nutrients to travel to all our organs. Water also

transports oxygen to our cells, removes waste, and protects our joints and organs. In

today's world, the need for Pure Drinking Water is becoming the issue for the

common man.

Water helps nearly every part of the human body function efficiently. Considering

that our bodies are almost two-thirds water, it is important to understand water's role

in healthy lifestyles.

Brain is 75% water / Moderate dehydration can cause headaches and dizziness

Water is required for breathing

Regulates body temperature

Carries nutrients and oxygen to all cells in the body

Blood is 92% water

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Moistens oxygen for breathing

Protects and cushions vital organs

Helps to convert food into energy

Helps body absorb nutrients

Removes waste

Bones are 22% water

Muscles are 75% water

Cushions joints

It is also found by doctors throughout the world that 90% of human diseases are water

borne. There are 3 types of water impurities, which are root cause of water borne

diseases –

1. Microbiological-Bacteria / virus.

2. Dissolved impurities - chemical.

3. Imbalance of Mineral Content.

Rapid changes are taking place in our environment. The air and water pollution is

also increasing. The main sources of drinking water are the rivers and downstream

which also have not been able to escape this pollution.

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Innovations in the Mineral Water Industry

When a consumer became aware of the problems caused by water pollution the

market saw an advent of ceramic water filters, which filters the dust and suspended

particles but dissolved impurities and microbiological impurities are not cleared out.

The mineral balance is also not maintained. 1980's witnessed more changes by a tap

attachment wherein Iodine resin is used to filter the water. It deactivates

microbiological impurities to an extent but has side effects due to iodine and does not

take care of dissolved impurities mineral balance.

Late 1980's witnessed Ultra Violet based purifier, which filters dust and deactivates

bacteria to a great extent. It maintains the odour and colour of water but does not

clear out the dissolved impurities and mineral particles. These things lead to the birth

of mineral water.

Historically, the need for purified water within Indian homes had been kept down to a

minimum. Essentially, there were three types of water that was used for different

purposes. The first type was used for rinsing. The second type, which was used for

cooking, was cleaner and kept covered. The third type was the cleanest – drinking

11

water – and was very often boiled before drinking. Since an average

family needed a small quantity, not more than five or six litres a day, boiled and

filtered water had been a convenient solution for some time. The fallouts were

obvious. “It was very difficult to convince the people that purification system was

worth the price. There was no visible way to demonstrate the benefit,” The otherwise

somnolent market began to change once companies like Eureka Forbes targeted the

office segment, while the mineral water players went after travelers. Ion Exchange

was the only company which had any measure of success in entering homes with

Zero-B. But clean drinking water returned on the national agenda a little later.

Only three decades ago few knew about mineral or spring water, and fewer still

thought that one day most Canadians would spend a lot of money to buy it. Moreover

with this commodity being a human necessity, it makes best sense to do business in.

As a normal human being requires on an average needs 2-3 liters of water everyday

and world population growing at 2-3% annually, the business opportunity is

humongous and the potential is largely untapped.

Since ancient time people have used water from mineral spring, especially hot

springs, for bathing due to its supposed therapeutic value for rheumatism, arthritis,

skin diseases, and various other ailments. Depending on the temperature of the water,

the location, the altitude, and the climate at the spring, it can be used to cure different

ailments. This started the trend of using mineral water for drinking purpose to exploit

the therapeutic value of the water. This trend started gaining momentum in mid 1970s

and since then large quantities of bottled water from mineral springs in France and

12

other European countries are exported every year. The bottled water

industry is estimated to be a whopping Rs.1600cr business. It has grown at a rate of

38-40% annually over the past four years.

Earlier it was privileged of the affluent class and foreign tourist and highly health

conscious people but the present decade, has witnessed increasing popularity among

average consumers, increasing leaving standards, disposable income, education and

awareness among the consumers domestic and foreign tourist, sophisticated business

houses and offices has sky rocketed the sales of bottled water in recent years.

Scarcity of portable and wholesome water at railway stations, tourist spots, and role

of tourism corp. etc. has also added to the growth. There is high scarcity index of

ground water in coastal areas and higher concentration of objectionable inorganic

constituents in many parts of country. This again enhanced the need for bottled

drinking. The growing demand for bottled water speaks volumes of the scarcity of

clean drinking water and the quality of tap water. It has become an icon of healthy

lifestyle emerging in India. It is the pet material used in bottled water that makes a

big difference in taste. Almost all has traces of plastic flavor. The interesting scenario

is that we have, on the one hand, a vast majority of population which is struggling

hard to get access to potable water and on other, the new generation concentrated in

urban areas getting accustomed to bottled water ‘culture’ even though it means they

have to pay through their nose for it. Selling ‘safety’ –i.e. pure and simple water- has

now become one of the fastest growing industries in India despite the harsh truth it is

build on the foundation of bad governance, inequality and obvious exploitation.

13

However bottled water provides the distance advantages of

convenient packing, consistent quality and is ubiquitous.

This particular industry in India has never looked back after the economic

liberalization process of 1991-92. In fact the fastest growth in the consumption of

bottled water in the world has been recorded in India according to a new study

conducted by the US based earth policy institute. It even question the rising thirst for

bottled water with consumption tripling in India and more than doubling in china over

the past five years. The sales of bottled water have exploded globally particularly in

Europe, North America and Canada in recent years, largely as a result of positive

public perception on the safety of mineral water. The corporate control and

distribution over this important liquid asset is growing as brisk rate in India.

According to Bureau of Indian standards (BIS), there are 1200 bottling plants (out of

which 600 are in the state of Tamil Nadu) and 200 Brands of packed drinking water

across the country (nearly 80% of which are local) batting over the markets which

amply signifies the market is big even by international standards. At 40% significant

growth rate, the market is expected to humble the fizzy drinks market soon.

Nevertheless, in India the per capita bottled water consumption is still quite low-less

than five liters a years as compared to the global average of 24 ltr. These are boom

time for the Indian bottled water industry- more so because the economy is sound.

India is the tenth largest bottled water consumer in the world. By taking into account

the per capita water consumption of France (111 liter) and US (45 liter) the future

potential of our country in this sector is immense- there cannot be anything more

14

significant for the Indian economy. The consumption of smaller

units of 500 ml has increased by around 140% perceptibly.

Current Global Trends –

Recent trend in bottle water industry include new product development, widespread

marketing and packaging efforts, and the emergence of new industries tapping into

bottle water, all aiming to gain markets further. The most conspicuous trend in the

bottled water industry is the development and flooding of a seemingly never ending

array of bottle water product. Among them are: bottle mineral water, spring water,

sparking water, well water, purified water, distilled water, vitamin infused water, mint

flavored water, fruit-flavored water, hydrating water and now even super oxygenated

water and cosmeceutcal water. One Australian company even extracts water from

apples and oranges by freezing fruit juice and using a ’pressure chilling’ process to

separate the fruit from the water. Another significant trend is product marketing and

packing. Realizing the consumer cite taste, quality and purity as the top reasons for

drinking bottled water, bottles market and design bottlers to display their purity.

‘Straight from nature to you’ is indicative of untouched, pure natural water marketing.

Another popular ad slogan says that their bottle water is “so pure, [that they] promise

nothing. “ Other manufactures seek to carve out a new level in the bottled water

industry introducing high-end products. These bottles seek distinctions by marketing

15

their water origins, fortification or even bottle shapes, size and

styles. Examples of these include: bottle water that now comes in bullet shaped glass,

icicle-shaped plastic, see through labels, sports ball-sized water bottles and the ever-

charging unique cylindrical containers. Another packing trend in the bottled water

industry is multi-packs. As current bottled water consumption grows, more

consumers are turning to multi-packs to save time and money.

Global Position of Bottled Water –

Bottled water represents the fastest growing segment of the global beverage market

with a market share of about 38%. World bottled water market is expected to reach

$65.9bn by 2012, stimulated by rising population, consumer spending patterns,

lifestyle trends and growing levels of health consciousness, among others.

The market is expected to grow rapidly in the coming years due to growing consumer

concerns about fitness, water quality and health. As stated by the recent report

published by Global Industry Analysts, global bottled water market is dominated by

Europe and the US, which together account for about 55% of the market value

estimated in the year 2008. Bottled water will continue to fare well in the global

beverage marketplace as a healthy alternative to carbonated soft drinks. Gains in

bottled water market will also come from flavored varieties and convenient packaged

formats, especially single-serve packs. Sparkling water market is dominated by

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Europe, which accounts for more than 75% of the world market

estimated in 2008. Western Europe comprises some of the world's largest per capita

bottled water consumer markets, which include Germany, France, Spain and Italy.

The largest proportion of bottled water consumers can be found in Germany, as

88.2% of its adult population drinks bottled water. The non-sparkling water market

constitutes the bulk of bottled water shipments, accounting for between 80-85% of

the market in volume and value terms. Non-sparkling bottled water is also expected to

offer the highest growth opportunity, outgrowing the sparkling bottled water market

by three to four times. Market for non-sparkling water in the US is projected to reach

$15.1bn by 2012.

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The major challenge for most companies is product innovation and

differentiation as water is still just water. Containers are an important part of bottled

water, as they constitute nearly 47% of cost. Even look, weight and price of the

product are as significant as the water itself. For instance, Colorado-based Biota sells

bottled water in biodegradable bottles that are produced using corn in order to attract

consumers who are ecologically conscious. Some companies try to attract children by

selling bottled water in attractive bottles with vivid designs and colours.Key players

dominating the global Bottled Water market include Aqua Gold International Inc,

Boreal Water Collection Inc, China Water & Drinks Inc, Group Danone, Danone

Naya Waters Inc, Isbre Holding Corp, Nestle SA, PepsiCo, Quilmes Industrials Sa-

Adr, Saint Elie, San Miguel Corporation and The Coca-Cola Company.

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19

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Indian Bottled Water Industry –

India is one of the biggest and most attractive water markets in the world. The boom

time for Indian bottled water industry is to continue- more so because the economics

are sound, the bottom line is fat and the Indian government hardly cares for what

happens to the nation's water resources. Most multi-national (MNC) companies view

India as the next big market with a lot of potential and growth possibility. Several

MNCs are waiting in the wings to expand a $ 287 billion global water market into

India. There is a huge market being exploited by the packaged water industry, and it's

growing at 40% per annum.With over a thousand bottled water producers, the Indian

bottled water industry is big by even international standards. There are more than 200

brands, nearly 80 per cent of which are local. Most of the small-scale producers sell

non-branded products and serve small markets. In fact, making bottled water is today

a cottage industry in the country. There are investments worthy mid-cap companies in

this segment. Despite the large number of small producers, this industry is dominated

by the big players - Parle Bisleri, Coca-Cola, PepsiCo, Parle Agro, Mohan Meakins,

SKN Breweries and so on. Parle was the first major Indian company to enter the

bottled water market in the country when it introduced Bisleri in India 25 years ago.

Industry sources estimate that the total Indian water market is worth more than $1

billion - consisting of approximately one-third for water provisioning, one-third for

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municipal water treatment and one-third for industrial water

treatment. The overall water market is growing at 15-20 percent per annum.

In just 50 years a water-rich nation has been reduced to a water-insecure one. By

2025, the per capita availability of water is likely to slip below the critical mark of

1,000 cubic meters. And with 82% of our villages overdrawing groundwater to meet

their needs and cities ferrying water from peri-urban areas, the country is close to

exhausting its groundwater reserves. India has 16 percent of the world's population,

2.5 percent of the land mass and 4 percent of the world's water resources. These

limited water resources are depleting rapidly while the demands on them are

increasing. Drinking water supplies in many parts of India are intermittent.

Transmission and distribution networks for water are generally old and badly

maintained, and as a result, are deteriorating. Corporate control over water and water

distribution in India is growing rapidly: the packaged water business is worth $250

million, and it's growing at a huge 40-50% annually. Around 1,200 bottling plants

and 100 brands of packaged water across the country are battling over the market,

overdrawing groundwater, and robbing local communities of their water resources

and livelihoods.

India is the tenth largest bottled water consumer in the world. Today it is one of

India's fastest growing industrial sectors. The rise of the Indian bottled water industry

began with the economic liberalization process in 1991. The market was virtually

stagnant until 1991, when the demand for bottled water was less than two million

22

cases a year. However, since 1991-1992 it has not looked back, and

the demand in 2004-05 was a staggering 82 million cases. The per capita bottled

water consumption in the country is still quite low - less than five liters a year as

compared to the global average of 24 liters. However, the total annual bottled water

consumption has risen rapidly in recent times - it has tripled between 1999 and 2004 -

from about 1.5 billion liters to five billion liters. Between 1999 and 2004, the Indian

bottled water market grew at a compound annual growth rate (CAGR) of 25 per cent -

the highest in the world. Indeed, the bottled water industry is one of the most thriving

sectors in India.

Indeed, the bottled water industry is one of the most thriving sectors in India.

According to another section of market observers, the market is growing at a

whopping rate of about 55 percent annually. Though exact figures are not available,

the market is growing for sure. Even though it accounts for only 5 percent of the total

beverage market in India, branded bottled water is the fastest growing industry in the

beverage sector. Bottled water is still not perceived as a product for masses though;

the scene is changing slowly thanks to low pricing and aggressive marketing

strategies adopted by new entrants. Some surveys show that truck drivers on

highways form a major chunk of bottled water drinkers. Penetration in rural areas is

another significant factor that is likely to play a key role in the development of the

bottled water trade. Bottled water is sold in a variety of packages: pouches and

glasses, 330 ml bottles, 500 ml bottles, one-liter bottles and even 20- to 50-litre bulk

water packs. The formal bottled water business in India can be divided broadly into

23

three segments in terms of cost: premium natural mineral water,

natural mineral water and packaged drinking water. Leave alone the metros, where a

bottled-water manufacturer can be found even in a one-room shop, in every medium

and small city and even some prosperous rural areas there are bottled water

manufacturers. Consumption of bottled water in India is linked to the level of

prosperity in the different regions. The western region accounts for 40 per cent of the

market and the eastern region just 10. However, the bottling plants are concentrated

in the southern region - of the approximately 1,200 bottling water plants in India, 600

are in Tamil Nadu. This is a major problem because southern India, especially Tamil

Nadu, is water starved. The majority of the bottling plants - whether they produce

bottled water or soft drinks - are dependent on groundwater. They create huge water

stress in the areas where they operate because groundwater is also the main source -

in most places the only source - of drinking water in India. This has created huge

conflict between the community and the bottling plants.

Packaged drinking water, which is nothing but treated water, is the biggest segment

and includes brands such as Parle Bisleri, Coca-Cola's Kinley and PepsiCo's

Aquafina. While the single largest share in the mineral water market might still

belong to an Indian brand -- Parle's $52 million Bisleri brand has a 40 percent share --

multi-national corporations are not far behind. Nestle and Danone are vying to

purchase Bisleri, and Pepsi's Aquafina and Coke's Kinley brands have been extremely

successful in edging out many of the small and medium players to buy-outs and

exclusive licensing deals. Kinley and Aquafina are fast catching up, with Kinley

24

holding 20-25 per cent of the market and Aquafina approximately

11 per cent. The rest, including the smaller players, have 20-25 per cent of the market

share. News reports indicate that other MNCs like Unilever are also eying the market.

Currently, Kinley is being manufactured in 15 bottling plants across the country and

according to Coca-Cola India President Alex von Behr, Coke had invested nearly $1

billion in India between entering the market in 1993 and December 2001. Behr says

that Coke expects a significant portion of our turnover to be accounted by pure water

business. Almost all major national and international brands have taken a plunge.

Parle's Bisleri that virtually monopolized the bottled water market is now vying with

Nestle, Coca Cola, PepsiCo, Manikchand, UB and Britannia. According to a national-

level study, there are close to 200 bottled water brands in India. Nearly 80 per cent of

these are local brands. Premium natural mineral water includes brands such as Evian,

San Pelligrino and Perrier, which are imported and priced between $2 - 2.5 a litre.

Natural mineral water, with brands such as Himalayan and Catch, is priced around 40

cents a liter. The Indian bottled water market, which has more than 250 brands, is

expected to undergo a major consolidation phase, and the need for standards and

regulations is of great importance, according to the Asian Bottle Water Association

(ABWA). The Indian bottled water market is valued at more than $250 million and is

growing at a rate of 60 per cent. The major growth in packaged water, however, was

in the bulk water segment. According to estimates, bulk water packs of 20 liters,

targeted at the institutional and home segments, grew at a rate of 30-40% in 2002

alone. Bisleri re-invented its 20-litre jumbo home pack, fitted with a spout, to acquire

a more 'consumer-friendly' image. According to industry estimates, the main

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consumers of packaged water are no longer restricted to the upper

class but include middle class and lower-middle class families as well. The 'rural'

market is currently dominated by tourists and travelers; packaged water is now

beginning to be seen as an essential appendage to any form of travel.

The packaged drinking water market in India is huge and growing. On account of the

dominant presence of unorganized regional players in the market, estimates for the

actual size of this segment vary. However, it is believed that the domestic bottled

water industry is around Rs.1500 to Rs.1800 crore in size and growing at the rate of

around 40% per annum. This is way ahead of the growth rate of 7.6% reported for

global market as a whole in 2006. The domestic demand has increased from 2 million

cases in 1990 to an estimated 68 million cases by 2006. In fact, India is estimated to

be the 10th largest bottled water consumer in the world. Market experts disclose that

there are more than 1,800 water brands in India, of which most are local and regional

brands that are often classified under the unorganized sector.

In India there are more than 200 local brands for bottled water. The major players in

this industry are as follows:

Coca-Cola India Pvt Ltd

PepsiCo India Holdings Pvt Ltd

Parle Bisleri Ltd

Parle Agro Pvt Ltd

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DS, Group

Manikchand Group

Tata Group

UB Group

Major players in the global water industry –

Arrowhead

Aquafina

Aquapod

Bisleri

Bonaqua

Bonafont

Ciel Purificada

Crystal Geyser

Dasani

Deer Park

Dejà Blue

Evian

Fiji

Galvanina

Gerolsteiner

Island Chill

Ozarka

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Pennine Spring

Perrier

Propel Fitness Water

Ramlosa

San Pellegrino

Current Market Scenario of Mineral Water Industry

A few years back, the mineral water market had been crawling at the rate of

3-4%, or even a lower figure. Indians carried drinking water in earthen

pitchers, plastic or PUF bottles. But increasing cases of typhoid and other

waterborne diseases began to be reported. In addition to this, liberalization

happened and the mineral water industry began to be stirred and shaken. The

market started growing an astounding rate of over 100% per annum. The fact

that there were very few players in the market meant that their business grew

by leaps and bounds.

The market today has grown to Rs11bn. The organized sector -- branded

mineral water -- has only Rs5bn of market share. The rest is accounted for by

the unorganized sector, which is dominated by small regional players. The

market is still growing – at a rate greater than 80% per annum.

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In the branded segment, Parle’s Bisleri is the market leader

with a share of more than 45%. Parle Agro’s Bailley comes a close second

with market share of 15%. Other major players in the market are Yes of

Kotharis, Ganga of T-Series, Himalayan, Hello, Nestlé’s Pure Life, Pepsi’s

Aquafina, Coca-Cola’s -Kinley Prime, and Florida etc .

Sensing the opportunity that this segment holds, MNCs began to draw up

plans to enter the market. Today the market is proving to be yet another

battlefield for an ongoing battle between the Desi’s and MNC’s. Last year the

industry had around 170 brands. This figure is over 300 presently. The major

foreign players are Coca-Cola promoted Kinley, Pepsi’s Aquafina,

Britannia’s Evian, Nestlé’s Perrier, Herbert sons and Danone International.

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Company Profile

30

Genesis

The name that epitomizes mineral water today was first introduced in Mumbai in the

early 60's. In 19

65 Signor Felice Bisleri an Italian by origin, came up with the idea of selling bottled

water in India. His company Bisleri Ltd. offered mineral water in two variants -

Bubbly and Still. In 1969 Parle bought over Bisleri (India) Ltd. and started bottling

Mineral water in glass bottles under the brand name 'Bisleri'. In due course Parle

switched over to PVC non-returnable bottles and finally advanced to PET containers.

Under the leadership of Mr. Ramesh J. Chauhan, Bisleri has undergone significant

expansion in their operations. The company has witnessed an exponential growth

with their turnover multiplying more than twenty times in a short span of 10 years.

The average growth rate over this period has been around 40% with Bisleri enjoying

more than 60% of the market share in the organized mineral water segment.

Currently Bisleri has 11 franchisees and 8 plants across India, with plans of setting up

4 new plants on the anvil. The overwhelming popularity of 'Bisleri' and the fact that

the company was the pioneer of the bottled water industry in India has made it

synonymous to Mineral water and a household name. So naturally 'When you think of

bottled water, you think Bisleri'.

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Innovations @ Bisleri -

The people at Bisleri value their customers & therefore have developed 8 unique pack

sizes to suit the need of every individual. They are present in 250ml glass, 250ml

bottles, 500ml, 1L, 1.5L, 2L which are the non-returnable packs & 5L, 20L which are

the returnable packs. Till date the Indian consumer has been offered Bisleri water,

however in their effort to bring to the customers something refreshingly new, they

have introduced Bisleri Natural Mountain Water - water brought directly from the

foothills of the mountains situated in Himachal Pradesh. Hence the product range

now comprises of - Bisleri with added minerals & Bisleri Mountain Water.

The commitment of the company is to offer every Indian pure & clean drinking

water. Bisleri Water is put through multiple stages of purification, ozonation & finally

packed for consumption. Rigorous R&D & stringent quality controls has made bisleri

a market leader in the bottled water segment. Strict hygiene conditions are maintained

in all plants.

In their endeavour to maintain strict quality controls each unit purchases performs &

caps only from approved vendors. The company produces bottles in-house. They

have recently procured the latest world class state of the art machineries that puts the

company at par with International standards. This has not only helped them in

improving packaging quality but has also reduced raw material wastage & doubled

production capacity. People can be rest assured that they are drinking safe & pure

32

water when they consume Bisleri. Bisleri is free of impurities &

100% safe.

Enjoy the Sweet taste of Purity!

.

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Vision Statement

Our vision is to be the dominant player in the branded water business where the

second player is less than 20% of their business.

Mission Statement

We are in the business to serve the customer.

He is the most important person.

He is the only one who pays.

He deserves the best quality and presentation at a worth of the price.

We must have world class quality, at the lowest production & distribution cost.

This will make us an unbeatable leader, and will have satisfied loyal customers.

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The Journey till Now –

1969: Buys Bisleri bottled water from an Italian company, Felice Bisleri.

Early-1980s: Shifts to PVC bottles from glass bottles used in 1969 and sales urge.

Mid-1980s: Switches to PET bottles, which meant more transparency and life for

water.

1993: Sells carbonated drink brands like Thums Up, Gold Spot and Limca to Coca-

Cola for Rs.400 crore.

1995: Bisleri launches a 500 ml bottle and sales shoot up by 400 per cent.

1998: Introduces a tamper-proof and tamper-evident seal.

2000: Introduces the 20-litre container to bring prices down from Rs 10 a litre to Rs 2

a litre.

2000: BIS cancels Bisleri's license of water bottling in Delhi since some of the bottles

did not carry ISI label; the license is restored one-and-a-half months later.

2002: Kinley overtakes Bisleri. The national retail stores audit by ORG-MARG show

Kinley's marketshare at 35.1 per cent compared to Bisleri's 34.4 per cent.

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2003: Bisleri says it plans to venture out into Europe and America

to sell bottled water.:

2006: Launch of Natural Mineral Water to increase the product portfolio.

2007: Introduced 250ml attractive bottles.

2008-2010: May introduce energy drinks and flavored water.

Expansion

36

Bisleri International Pvt. Ltd. is committed to meeting the needs of its customers

across the country and to effectively service the end consumer Bisleri has been

working continuously to establish fresh bottling and distribution capacities.

Over the course of last one year, bottling plants have come up at:

Location Effective Date

Wadki, Maharashtra 17.08.2007

Ahmedabad, Gujarat 13.11.2007

Chennai, Tamil Nadu 15.11.2007

Andaman & Nicobar 18.12.2007

Madurai, Tamil Nadu 05.01.2008

Rajampet, Andhra Pradesh 29.01.2008

Mysore, Karnataka 29.02.2008

Udaipur, Rajasthan 01.03.2008

Kanpur, Uttar Pradesh 01.04.2008

The period from August to December 2008 have seen the following additional

capacities go on stream:

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Location -

Nagpur, Maharashtra

Wada, Maharashtra

Dahisar, Maharashtra

Nanded, Maharashtra

Chennai, Tamil Nadu

Varanasi, Uttar Pradesh

Jammu, Jammu & Kashmir

Since August 2008, the company has been planning further capacities in the

following states:

Punjab

Haryana

Uttar Pradesh

Himachal Pradesh

Rajasthan

Assam

West Bengal

Gujarat

Karnataka

Andhra Pradesh

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Tamil Nadu

Kerala

Product Portfolio of Bisleri -

Bisleri has developed 8 unique pack sizes to suit the need of every individual. They

are present in 250ml cups, 250ml bottles, 500ml, 1L, 1.5L, 2L which are the non-

returnable packs & 5L, 20L which are the returnable packs.

 

1. Bisleri with added Minerals:

39

This product is bottled drinking water at its best. Bisleri with added minerals has a

TDS count (total dissolved solids count) of approximately 100. Bisleri Mineral Water

contains minerals such as magnesium sulphate and potassium bicarbonate which are

essential minerals for healthy living. They not only maintain the pH balance of the

body but also help in keeping a person fit and energetic at all times.

The composition of Bisleri Water in milligrams per liter (mg/l):

160-TDS

7.2-ph factor

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13.6-Calcium

22-Chlorides

58-Bicarbonate

7.8-Magnesium

2-Nitrate

19.3-Sulphates

66.1-Hardness

Purification -

Every drop of Bisleri water is purified as per international standards to ensure that

your Bisleri experience always remains pure and satisfying for longer. The following

is a brief understanding of the water treatment process.

1. Chlorination:

Kills micro organisms. Remove organic matter.

2. Arkal Filter:

Removes suspended matter and turbidity.

3. Carbon Filter:

Removes residual chlorine & odours.

4. Reverse Osmosis:

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Removes organic material. Controls total dissolved solids in

the water.

5. Addition of Minerals:

For the purpose of maintaining a balanced mineral content.

6. Micron Filtration:

Additional safety measures to guarantee purity.

7. Ozonation:

Ensures water remains bacteria free for longer life.

Pack Sizes Available –

Bisleri with added minerals is available in 250ml cups, 250ml bottles, 500ml bottles,

1 litre bottles, 1.5 litre bottles, 2 litre bottles and 5 and 20 litre cans.

2. Bisleri Mountain Water:

42

The search for new products has now led the company to the new Natural Mountain

Water. Inspired by nature, it comes from a pristine source situated in the beautiful and

scenic mountains of Northern India. Natural Mountain Water resonates with the

energy and vibrancy of health and well-being. It is packed with the goodness of

nature's minerals which will refresh one’s senses and rejuvenate a person.

Bisleri Natural Mountain emanates from a natural spring, located in Uttaranchal and

Himachal nestled in the vast Shivalik Mountain ranges. Lauded as today's 'fountain of

youth', Bisleri Natural Mountain Water resonates with the energy and vibrancy

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capable of taking a person back to nature. Bisleri Natural Water is

bottled in its two plants in Uttaranchal and Himachal Pradesh.

Pack sizes Available –

Bisleri Mountain Water is available in six different pack sizes of 250ml, 500ml, 1

litre, 2 litres, 5 litres and 20 litres

3. Bisleri Himalayan Water:

“The water that almost descends from the Gods”

The Himalayas, the abode of the Gods, where the earth meets the heavens and where

in lies nature's untouched bounty. White glaciers, snow-capped mountains and a

plethora of exotic herbs and other flora that have therapeutic properties. This is where

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one will find a treasure trove of hidden natural spring water that

flows through natural purifying filters, mineral rich rocks and herbs from which it

absorbs many healing properties. Bisleri bottles this pristine spring water directly at

source, at the foothills of the Himalayas.

Pack Sizes Available –

Bisleri Himalayan Water is available in 500ml. bottles & 1 litre bottles.

Packaging @ Bisleri -

The most critical aspect of bisleri’s bottling process that sets it apart from the rest of

the industry is the fact that their bottles remain untouched right through the rinsing,

filling, capping and labeling operations.

Filling:

Bottles are fed by an air conveyor from the blowing unit directly into the in-feed of

the RFC. The RFC equipment is neck run and it boasts of a monoblock unit, which

means that every bottle is held by the neck automatically while being inverted, rinsed

and sprayed with ozonated water at 2 bar pressure. After draining, the bottles are re-

45

inverted and transferred to the filler. At the filler these bottles are

straightened up and gradually lifted to the filling valves which open only when a

bottle is placed under them. Filling is then done systematically through gravity.

Capping:

After the filling process the bottles are then transferred to the capping section. Here

ozonated-water rinsed caps are screwed on the bottle with uniform torque. Since the

water is ozonated all product contact parts are of 316L grade stainless steel and the

rubber parts are of EPDM. (All components are water lubricated above the table top.)

Labeling:

From the capping section the bottles are directly sent to the labeling section. All

Bisleri bottles are labeled on a hot melt reel feed BOPP labeling machine. This

machine allows each individual bottles to be spaced out and fed to the labeling station

where precisely cut labels with a strip of hot melt glue at the leading and trailing

edge, get rolled around the bottle. These labels are fed into the machine in a roll form

too.

Quality Check:

From here on, the bottles go through an online check where qualified personnel

inspect each bottle for any leaks or breakages. They are then packed into sturdy

cartons which are dispatched to the market by the company’s fleet of trucks.

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47

“It’s a compliment being generic to the category, but its not very good when

consumers think any mineral water brand is Bisleri”

Bisleri, a product established in India by Ramesh Chauhan, Chairman of Parle

Agro Minerals has become a generic brand. Bisleri was the first marketed bottled

water in a totally virgin market. The brand has become synonymous with mineral

water; consumers accept any brand offered by the retailer when they ask for

Bisleri.

So far Ramesh Chauhan’s Bisleri enjoys the largest market share of 56% in the

Rs1100 crores mineral water markets and is growing at the rate of 180% per

annum. Annual sales of Bisleri have touched Rs400 crores. In seventies, 'Bisleri'

was the only mineral water, which had national presence, and the sale was to the

tune of approximately one hundred thousand cases valued at about Rs.60 lacs.

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49

A quick look at Bisleri's manufacturing reach indicates that it is

represented across the country – North accounts for 35% of sales for the industry,

West accounts for 30%, South 20% and the East 15%.

In order to be available in untapped areas Bisleri has setup 16 plants located

all over the country - three-fourths of which are company owned. The balance

is run by franchisees. Bisleri has 5 plants in the North, 5 in the West- two of

which were setup in the last year at Ahmedabad and Surat, 4 in the South and

2 in the East. The company has bottling units located in Chennai, Bangalore,

Goa, Calcutta, Mumbai, Delhi, Jaipur, Uttar Pradesh, Punjab, Indore and

Nepal. The new plants are being set up in states like Kerala, Orissa, Bihar and

North Eastern States, which hitherto have been unexplored by the company.

It is also changing its production strategy and shifting to a 10-hr production

schedule with sudden increase in demand planned to be met by additional

production.

Bisleri has planned to expand its operations by investing Rs.60 crores in the

upgradation of facilities. The 120-bottles per minute (BPM) capacity of the

16 units across the country will be increased to 240 BPM.

Conscious of the environmental implications of its PET bottles, the company

is to set up recycling plants at Delhi and Chennai, each with an outlay of

Rs.50m. These will process 500 kg of PET per hour. The processed material

will be an input for polyester yarn manufacturers. In centers other than Delhi

and Chennai, the company will set up crushing units to crush the used PET

bottles.

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The company's expansion plans will see its water bottling

capacity go up from the present 400 million liters to 500 million liters. Parle

Bisleri Limited (PBL) is planning to invest Rs 200 crores to increase its

bottling capacity and double its turnover. The expansion will also increase the

number of company's bottling plants from 16 at present, to 25. The company

will set up all the new plants as green field plants. It doesn’t have any

intentions to acquire any existing plants.

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52

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1.

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Every brand needs a good ad campaign to establish itself in

the market. So it becomes very imperative to look at various ad campaigns

that Bisleri undertook to build itself as a brand. Bisleri started its game plan

with the punch line of ‘Pure and Safe’ and used the same catch-line for

advertising. But with the advent of many new players, all claiming the purity,

it became very imperative for Bisleri to differentiate its product so as to stand

out in the market. Bisleri found the answer in ‘sealed cap bottles’. It claimed

100% purity. While the bottles of the other brands, it claimed, could be

refilled with ordinary, or even germinated water, Bisleri’s seal capped bottles

ensured the consumer of purity of water and single-used ness of the bottles.

The ad showed a milk-man and a child showering their buffaloes and filling

the ‘so-called’ mineral water bottles with the same water and packing them

with the simple polythene seal and the consumer not knowing about the

‘purity’ of the water he is drinking. Next clip shows the Bisleri bottles being

sealed with plastic caps and ensuring the purity of water. The ad did work for

Bisleri and it got its much needed product differentiation.

In 2000, some giant brands like Pepsi and coca-cola entered the mineral water

industry with a big bang. Bisleri now had a big threat of maintaining its

market cap. While Coca-cola introducing its brand ‘Kinley’ as a health care

product, Pepsi projected ‘Aquafina’ as something as pure as ‘Your own

body’. Pepsi targeted the young generation and introduced Aquafina as a

fancy product to carry.

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The ad campaign of Aquafina emphasized as ‘70% of your

body is water’ and thus give your body the purest water. The ad showed

young vibrant models and created the atmosphere of youthfulness. Water,

Pepsi claimed, was no longer a simple beverage, but was something highly

fashionable. They complimented it by giving their bottles an attractive look.

This soon caught the eye of the consumer. All these factors made Pepsi the

biggest upcoming competitor of Bisleri (whereas Kinley lagged behind the

race, showing a doctor advising a family to take Kinley for pure water – not a

very attractive ad campaign).

Bisleri, to counter-attack the new ‘Feel-Young’ fever had to even bolder steps. They

first changed their base line from ‘Pure and Safe’ to ‘Play Safe’. They tried a brand

new ad campaign to catch the fancy of consumer. The new ad showed a young

romantic couple on a marooned island, when the girl seductively attracts the guy and

he follows her in trance. The moment he gets hold of her, she whispers something in

his ears. The next few shots show the guy looking for something in frenzy…can not

find it….rushes towards the chemist’s shop….buys ‘something’ (keeping the

audience in suspense…or rather implicitly pointing for ‘……’). The girl opens it

and….POOF….takes out a bottle of Bisleri and quenches her thirst. Caption: “Play

Safe”. This campaign was to catch the attention of youth and a new Indian society

which is supposed to be ‘not-so-prudish’. Thus Bisleri has taken a very bold step. The

T.V. ads have been complimented by print ads also. The company has to focus on the

marketing management of the product. In light of the challenge in front of the

company and its current strengths and position, we have incorporated the marketing

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mix to counter the marketing strategies of the competitors by

developing its own marketing.

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58

MARKETING MIX

The set of controllable tactical tools- product, price, promotion, and place (4

Ps), that the firm blends to produce the response it wants, in the target

markets.

The 4Ps

Product

The main product of the company is the mineral water by the name of Bisleri

Mineral water. Other than mineral water the company has also the soda water,

mountain water under its brand name called the Bisleri Soda Water and

Bisleri Mountain Water. The concept of bottled mineral water was introduced

in India, first by Bisleri, and that is the reason, it has become a generic name

for the mineral water. Bisleri has become a perfect synonym of the mineral

water for the Indian consumers.

The main challenge facing the company or any other player in this mineral

water industry is that there is no scope of invention and innovation in the

product, which can be added as the additional benefits of the product.

It is just water after all. This is what the Indian customers think of the bottled

water. If we are talking about a product like television we can think that the

innovations could provide extra benefits derived from the product. For

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example other than its core usage the product can provide for

Internet facilities using conversion.

Place

Place stands for the company activities that make the product available to the

target customers. To make the product available to the target consumers a

good distribution network has to be there to support the good quality of the

product. Here in the case of the mineral water industry the distribution

network is the important factor in being competitive and the catch lies in

making water available to maximum number of places in the country.

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DISTRIBUTION NETWORK:

The small-scale players built their sales by piggybacking on the generic

category built up by Bisleri. It’s a battle that Bisleri can win by sheer

distribution muscle. One of the reasons why Bisleri is running strong in this

industry is its strong distribution network built over the years since its

inception. Further, Bisleri plans to increase its distribution network over the

southern and eastern region, where it is behind popular brands like Team in

Tamil Nadu and in Andhra Pradesh.

Prices for following packaging variants

(AN ECONOMIC FACTOR AFFECTING THE BUYER’S BEHAVIOR)

Price is the sum of values that consumer exchange for the benefits of having

or using the product or service. Price is the only element in the marketing mix

that produces revenue. All other elements represent costs.

In India, where the majority of the population comprise of the middle-income

group and lower income groups it is not hard to understand that pricing is one

of the most important factor in the buying decisions.

Bisleri has met the expectations of the consumers in terms of pricing the

product and also making the product available in variations of litres, making

Bisleri both convenient and affordable. The company is following a very

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aggressive pricing. Its product is available at a very

reasonable price.

250 ml Glass Rs.4

250 ml Bottel Rs.6

500ml Bottel Rs.10

1 Litre Bottel Rs.15

2 Litres Bottel Rs.22

5 Litres Jar Rs.35

20 Litres Jar Rs.70

Promotion

Modern marketing calls for more than just developing a good product, pricing

it attractively, and making it available to the target customers, companies

must also communicate with their customers, and what they communicate

should not be left to chance.

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A Company’s total marketing communications program-

called its Promotion Mix consists of specific blend of advertising, personal

selling, sales promotion, and public relations tools that the company uses to

pursue its advertising and marketing objectives.

ADVERTISING CAMPAIGN:

While designing the advertisement campaign, it is necessary to keep in mind

the opinion leaders. Youth are the opinion leaders of the present time. And

thus it becomes necessary to design the campaign keeping the youth in mind.

The opinion leaders would further trickle down the message to the less active

members of the society.

This is exactly what Bisleri is doing. Bisleri has started an advertisement

campaign stressing the point of purity and flaunting the patent right the

company has over the breakaway seal. The company has tried to put the

message across louder, by using the ad campaign that catches the eye of

everyone, specially the youth.

Bisleri that was looking for a differentiator decided to make the breakaway

seal the symbol of purity. The tamper-proof seal was developed, around

which the communication was woven. The campaign stresses the safety

provided by the breakaway seal by illustrating the ease with which

conventionally sealed bottles can be refilled and recycled.

The objective with the campaign would have been to highlight the tamper-

proof seal and create doubt in the consumer’s mind of the purity of the other

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brands. That is, Bisleri is the only one that guarantees purity

and keeps you Safe.

To conclude: We find that new advertisement campaign of Bisleri is eye

catching. This is what the company should do. And also the company should

make the message clearer to the customers that it has the patent right over the

breakaway seal. In the survey we found that the consumers are aware of the

breakaway seal but are not aware that the company has the patent right.

Apart from a high dose of investments on expanding bottling capacities and an

ad budget that’s risen six-fold over last year, if Bisleri wants to penetrate every

possible segment of the market, it can do that by introducing more pack sizes

and establishing the brand strongly with trendy new packaging.

Apart from creating consumer pull with campaign, the company, to increase its

sales would have to do the sales push as well. For that it would have to give the

retailers and other stockiest high trade margins and incentives for keeping the

product. This is very important in case of this product because consumers

would take up what is available to them at ease and whatever retailer is giving.

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65

COMPETITION

The mineral water market is set to explode and hit the Rs.2,000-crore mark in

the next couple of years. This is drawing the big guns attention. First

Britannia launched Evian. And recently, soft drinks giant Pepsi entered the

fray with Aquafina. Now, Nestle too is reportedly planning a foray.

Meanwhile, Parle Agro’s Bailey has been growing steadily. Small local

players too are breathing down Bisleri’s neck riding on better trade margins

and intensive distribution (in their respective areas of operation).

The competition facing Bisleri can be categorized into a few brand names like

Parle Bailey

Pepsi Aquafina

Coca Cola Kinley

With Parle’s Bailey being the main competitor and second in market share in

the organized market, Bisleri faces tremendous competition from the

unorganized sector.

Aquafina

The advantage for Aquafina is that though there are over 300 labels of bottled

water in the Indian market, few can be called brands. It is necessary to

remember that every product with a name is not a brand; even Bisleri has

become generic to this category.

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It does not have any emotional values attached to it. So there

was no difficulty for Pepsi in creating space in such a market, which is

completely different from the soft drinks market, where it will be very

difficult for any new player to find a slot. So the creative team at HTA

virtually had an empty canvas to work on. And it came up with a campaign

that did have people talking. First, a series of teasers, followed by a film that

showed healthy bodies and youthful people and, of course, lots of water.

Although Aquafina is only available in a 750 ml pet bottle, the pricing, at

Rs.10, is competitive. And it is safe. In addition to the tamper proof seal,

there is a reliable method of checking whether the bottle has been refilled.

The date of manufacturing has been written on the cap as well as on the

bottle. Thus a person who is refilling it would have to find a matching cap

and bottle, the probability of which is very low.

Coca Cola- Kinley

Coca-Cola joined the race by announcing the imminent launch of its own

brand of water and, in the process, putting to rest rumors of its so-called

takeover of Bisleri. Kinley is targeting institutions.

Parle Agro’s- Bailley

Bailley the brand that is owned by Ramesh Chauhan’s brother Prakash

Chauhan is very popular in the southern part of India. Southern part of India

accounts for 20% of the sale of the whole water market industry. Bisleri

would have a tough competition from Bailley since the company plans to

67

spread its presence in that part of the country. Another thing

that makes the competition difficult for the company is the price at which it’s

competitor is offering the product. Like Bisleri it also gives the 1 lt. For

Rs.10. The only strength point of the company, which it can capitalize, is it’s

generic name. And also the company would have to enter that market with a

strong distribution base. We know the fact that Bailley has grown at a rapid

pace using the route of franchising, which Bisleri has not adopted as yet. This

is another point, which the company would have to take care of to face the

competition.

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PURE BOTTLED DRINKING-WATER

The Safety of Bottled Drinking-water

Because of the large number of possible hazards in drinking-water, the development

of standards for drinking-water requires significant resources and expertise, which

many countries are unable to afford. Fortunately, guidance is available at the

international level.

The World Health Organization (WHO) publishes Guidelines for Drinking-water

Quality which many countries use as the basis to establish their own national

standards.

International Standards for Bottled Drinking–water

The intergovernmental body for the development of internationally recognized

standards for food is the Codex Alimentarius Commission (CAC). WHO, one of the

co-sponsors of the CAC, has advocated the use of the Guidelines for Drinking-water

Quality as the basis for derivation of standards for all bottled waters.

CSE Report on pesticide residues in bottled water

The Centre for Science and Environment, a non-governmental organization based in

New Delhi, has set up the Pollution Monitoring Laboratory to monitor environmental

pollution. Its main aim is to undertake scientific studies to generate public awareness

about food, water and air contamination.

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The bottled water market share of major brands is Bisleri (51%), Bailley (17%), Yes

(11%) followed by Kinley (10%), Aquafina (4%).

Drinking water filled in hermetically sealed containers of various

compositions, form, and capacities that is suitable for direct consumption without

further treatment

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FACTS

Bottled drinking water samples of some top brands– Bisleri (Parle Bisleri Pvt. Ltd.),

Bailley (Parle Agro Pvt. Ltd.), Aquafina (Pepsico India Holding Pvt. Ltd.), Kinley

(Hindustan Coca Cola Beverage Pvt.

Ltd.) and of other less popular brands like Best, Royal Aqua, Seagull etc., which were

being sold and manufactured in Mumbai and nearby areas like Pune and Daman, were

purchased randomly. All the samples were purchased from retail outlets in the market

and from railway station and were checked for proper seal, date of manufacture and

batch number.

Even the top brands, which claim to use treatment methods like purification filtration,

activated carbon filtration, demineralization and reverse osmosis were found to

contain residues of pesticides. It might be due to the reason that the manufacturers

may be by-passing the raw water after partial treatment and remixing it with the fully

treated stream so as to cut down the cost of treatment. On the basis of the results

different brands can be rated in terms of total organochlorine and organophosphorus

pesticides from least to most contaminated as-

Aquafina

Macblue

Bailley

Kinley

Seagull

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Sheetal

Bisleri

Brilliant

Bally

Apurva

Royal

Aqua

Best

OXYRICH

When absorbed into the body, these pesticides are not metabolized

rapidly hence get stored in the fat.

The organophosphorus pesticides affect and damage the nervous system and can

cause cancer. They can cause reproductive and endocrinal damage also.

CONCLUSION

"Water, water everywhere, but not a drop to drink" from the Rhyme of the Ancient

Mariner is perhaps a fitting description of the attitude of many consumers living in

72

urban areas today who are increasingly looking toward bottled water

as a means of meeting some or all of their daily requirements.

It holds that discomfort or dissonance occurs when a consumer holds conflicting

thoughts about a belief or an attitude object.

Consumers may have various reasons for purchasing bottled drinking water, such as

taste, convenience or fashion, but for many consumers, safety and potential health

benefits are important considerations.

Thus, the pesticide used in the water makes it dangerous to use regularly.

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Strengths

Old and famous brand name

Better packaging

Effective distribution network

Famous as pure & safe among consumer

Good product mix

Frequent quality checking

Much used by corporate world

Better management

Give regular follow up to distributor

Indian image

Better sales force

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Sponsoring various cultural program

Better visibility

Good intensives to dealer

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WEAKNESSWEAKNESS

one liter packs which accounted for 50 per cent of the company’s turnover

has come down to 30 per cent. The two-liter packs, which have practically

disappeared from the shelves, have come down from 20 per cent to five per

cent. The growth has come from the 500 ml and the five-liter category, which

account for 15 per cent and 36 per cent of turnover respectively.

Earlier, Bisleri was selling at a premium of Rs.12 for the same size. But

beginning last year, it has been selling its one- liter bottles at Rs.15 each.

Aqua Minerals attributes the Price slashing to retailer margins being on the

higher side earlier.

The competitive Rs.15 price tag has been working well for the brand.

In what could be a masterstroke, Aqua Minerals is testing out the possibility

of mass marketing 20-litre Bisleri bottles for an MRP of Rs.70. That works

out to Rs.20 a litre. If the logistics, manufacturing and distribution do fall in

place, it could change the face of the purified water market for keeps.

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OPPURTUNITIESOPPURTUNITIES

So far, Chauhan has not used the franchising route very aggressively unlike

Parle Agro’s Bailley which has grown very fast

using this route. He has around six franchisees in Mumbai, Delhi, Chennai,

Bangalore, Goa and Rajasthan. “We shunned this route so far because in most

areas where we had no presence, it was imperative that we did it ourselves.

Now for further expansion we can afford to use the franchisee route.”

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THREATS

Bisleri will be taking the packs back and refilling them. But the packs cannot

be sterilized since the material used is PET and cannot withstand high

temperature. So how can he ensure purity?”

Strategy to counter threats and others?

We subject the bottles to chlorine washes, hot water washes and ozone

washes before we refill the bottles.

The company is betting on the home segment. The reason being that filters

and water purifiers also need to be cleaned periodically and still do not

guarantee absolutely clean water. In order to service this segment, the five

liter packs are being pushed through the route of fat dealers (wholesale

dealers) who are retailers as well as stockiest and serve as supply points from

where customers can pick up the required quota. In future, consumers will be

able to call the fat dealer and place orders for home delivery of the five-liter

pack. The company has so far appointed 180 such dealers. This is a high

turnover, low-margin retailer who does not keep a store but serves a similar

purpose with other items such as rice or Atta.

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Objectives of the Project –

To find out the preference level of Bisleri botteled water in the market.

To determine the market share of Bisleri Brand of Bottle Water

To know the competitors strategies.

To find untapped retailers.

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RESEARCH METHODOLOGY

1.RESEARCH DESIGN:

The research design which has been used in the project report is descriptive in nature.

2.SAMPLE DESIGN:

The sample design which has been use in this project report is simple random

sampling.

A decision has to be taken concerning a sample unit before selecting the number of

samples. It may be geographical as well as individual. Here Noida city has been

taken as a geographical unit and retailers as an individual unit.

3.SIZE OF SAMPLE:

This refers the number of items (Outlets) to be selected from the finite universe to

constitute a sample size. The survey was conducted of 50 outlets.

4.NATURE OF DATA:

In this project report the data is collected through primary data source as well as

secondary data.

Type of Data collection Method adopted Mode of communication

Primary Questionnaire Personal Interviews

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FINDINGS

After the tabulation and analysis of 50 respondents from ghaizabad city:-

He following findings are obtained:

Q. 1 Whether the customers are already aware about this product?

a)Aquafina b)Bisleri c)Kingfisher d)Kinley e)Others

Which brand of bottle water do customers ask for the most?

.

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ANALYSIS:

According to market share figure, Bisleri is the leading brand which 55.45% market

share. While Kinley is on second rank with 23.33% market share, Aquafina is on the

third rank with 13.95% share, Kingfisher have 3.97% market share and others 6.30%.

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2. Which brand of bottle water do customers ask for the most?

a)Aquafina b)Bisleri c)Kingfisher d)Kinley e)Others

ANALYSIS:

50% retailers said that when it comes to mineral water customers only said give

me a Bisleri then on second number they ask for kinley or any other bottled water.

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3. How much is your monthly sale of diffrent brands?

ANALYSIS:

60% of sellers said that they have their maximum sales from Bisleri, 20% sellers said

that they have their maximum sales from Kinley, 10% said that they are getting good

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revenues from Aquafina, 8% get it from Kingfisher, 2% get it from

others.

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4. Why do you prefer to sell more this particular brand?

a. Easily available

b. More demand

c. Quality Factor

ANALYSIS:

40% saler prefer to sale Bisleri because of it high demand, 34% sale it because of

its easily availablety and 26% sale it because of its good quality.

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Q. 5 When you talk of mineral water, what brands come to your mind?

ANALYSIS:

35% seller said that when they think of mineral water Bisleri name comes in their

mind, 25% of the sellers said that Kingfishers comes to their mind, 20% said

Aquafina, 15% said Kinley and 5% said others.

Q. 6 Whether the customers are already aware about this product?

88YES

NO

S1

85%

15%0%

20%40%60%80%

100%

Series1

INTERPRETATION: 85% are aware about the product and 15% people are

unaware.

7. Which brands of mineral water are more available on your shop?

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Analysis:

40% of the saler said that they kept Bislsri more in their shop, 25% said that they

stock more Aquafina , 15% kingfisher as well as 15% Kinley and only 5% stock

others .

8. Number of the buyers who buy this particular brand of water per day?

a) 0-5 b) 5-10 c) 10-15 d) above 15

90

ANALYSIS:

As per the above analysis 40% sellers sell10-15 bottels in a day, 25% sellers sell 5-

10 bottles in a day, 15% sell 0-5 bottles, 10% sell Above 15 bottles.

9. Are you satisfied with the current margins on this brands?

Yes

91

No

ANALYSIS:

As per the above analysis 88% sellers are satisfied with the current margins of this

brand, but 12% sellers are not satisfied.

10. Whether you are getting any complaints from customers specify ?

92

ANALYSIS:

As per the above analysis 88% sellers are satisfied with the current margins og this

brand, but 12% sellers are not satisfied.

93

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CONCLUSION

The players who will endure will be those who have a strong regional

presence. Take the case of Team, which enjoys immense popularity in Tamil

Nadu. Similar brands with a regional presence are Siruvani, and Koday. Thus,

new players will be looking for a distinct positioning. One such brand is

Bisleri, the largest selling bottled water brand in the US. After its successful

test launch in Mumbai and Bangalore, Bisleri was released in Chennai,

Ahmedabad, Vadodara, and Pune. Parle Agro has invested over Rs.5 crore in

the new Bisleri water project in Maharashtra.

Moreover, Bisleri will be served absolutely chilled.” That makes sense too,

since surveys have indicated that an overwhelming majority of the bottled

water that is consumed in India is by people who are traveling.

With the big players, who have the support of the financial muscle and a large

consumer base in other categories with them, like Pepsi, Kingfisher, Nestle

and Coke — the battle is the tougher arena of brand building. All the

multinationals are looking at high-octane advertising targeting specific

consumer segments. Sensing troubled waters ahead, Bisleri is busy working

on a strategy to soak up the competition and protect his water kingdom.

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Strategy which the company could adopt, are as follows: -

1.The soft target

Selling bottled water requires constantly expanding the market. The company

should also target the market for soft drinks. All the soft drinks addresses

three issues: fun, thirst and refreshment followed by status to some degree.

The thirst and the status value of the mineral water are well accepted. There

is very little the mineral water brands can do to add the fun element around

the product. Again here, it becomes important for the company to have a good

distribution network. It should be understood that if the mineral water is

easily available everywhere then it can be said with confidence that it would

be able to replace the soft drinks as thirst quencher. If we try and look at the

reasons that why consumers buy soft drinks as thirst quenchers: we would

find the answer as that either water is not available or if it is available then

safety is not assured. Therefore, backed by a good distribution network

mineral water industry can grow at a rapid rate.

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LIMITATIONS

o A small segment of the market has been covered only, so the conclusion

cannot be generalized.

o The data collected cannot be free from errors, since some of the respondents

failed to give correct information.

o Study accuracy totally based upon the respondents response.

o Stipulated short span of time for survey.

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RECOMMENDATIONS

o Tries to give retailers good margin so they feel it more

profitable to sell our product more than the competitors.

o Tries to provide small refrigerator to the big retailers as you

competitors done so that they can provide chilled water to the

consumers because your competitors do not allow the to keep

you product in there refrigerator and because of these reasons

some time retailers hesitate to keep your product.

The company should take care of the demands of distributor such as providing

extra cartons (as some cartons are destroyed during loading and unloading

activities), promotional materials etc.

o The company should increase its tie-ups with major fast food retail outlets

and leading chain of restaurants and Hotel in order to boost sales

o Advertisement to build the brand image that will provide the required

ground to establish the authenticity to the product.

o Awareness programs at health club, schools & Nursing homes.

o To win over the consumer belief and faith over the genuity of the

product.

o Display of hot and cold dispensers and bottles at places like hotels,

clubs and airports where upper class group visits, as they are the

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potential customers. Place like departmental stores,

petrol pumps and super bazaars can also be considered.

o The company should organize camps at various part of the city also

road show to bring about the difference between mineral water and

filter/purified water and to tell the people how mineral water is more

hygienic than filtered water/purified water.

o To aware people the cost benefit analysis to the customer of how the

mineral water would cot less and benefit more, because people using

purifier system cost too much.

99

100

BIBLIOGRAPHY

Marketing Management, Philip Kotlar

Annual Report, Bisleri

Business Magazines

Websites

101

ANNEXURE

102

QUESTIONNAIRE

Retailers details (please fill up ) : ________________________________

Retailers shop Name : ________________________________

Address :

Contact Person : ________________________________

Q1. Which brand of bottle water do you sale more?

a. Kingfisher

b. Kinlery

c. Aquafina

d. Bisleri

e. others

Q2. Which brand of bottle water do customers ask for the most?

a)Aquafina b)Bisleri c)Kingfisher d)Kinley e)Others

103

Q3 How much is your monthly sale of diffrent brands?

_______________________________________________

Q4. Why do you prefer to sell more this particular brand?

a. Easily available

b. More demand

c. Quality Factor

Q5. When you talk of mineral water, what brands come to your mind?

Q6. Whether the customers are already aware about this product?

____________________________________________________

Q7. Which brands of mineral water are more available on your shop?

____________________________________________________

Q8. Number of the buyers who buy this particular brand of water per day?

a) 0-5 b) 5-10 c) 10-15 d) above 15

_________________________________________________

Q9. Are you satisfied with the current margins on this brands?

Yes

No

104

Q10. Whether you are getting any complaints from customers

specify ?

__________________________________________

Q11. Whether you are getting any complaints from customers, specify?

____________________________________________________

Q.12. To which brand and reason?

Brand:- _____________________________________

Reason:- _____________________________________

105